Donaldson (NYSE:DCI) Hits New 1-Year High After Better-Than-Expected Earnings

Donaldson Company, Inc. (NYSE:DCI)’s share price hit a new 52-week high during trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $93.48 and last traded at $93.7120, with a volume of 158333 shares trading hands. The stock had previously closed at $87.60.

The industrial products company reported $0.94 EPS for the quarter, beating analysts’ consensus estimates of $0.93 by $0.01. Donaldson had a net margin of 10.25% and a return on equity of 30.24%. The firm had revenue of $935.40 million for the quarter, compared to analysts’ expectations of $922.68 million. During the same quarter in the prior year, the company posted $0.83 earnings per share. The business’s revenue for the quarter was up 3.9% on a year-over-year basis. Donaldson has set its FY 2026 guidance at 3.950-4.110 EPS.

Donaldson Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, December 22nd. Stockholders of record on Friday, December 5th will be paid a $0.30 dividend. The ex-dividend date is Friday, December 5th. This represents a $1.20 annualized dividend and a dividend yield of 1.3%. Donaldson’s payout ratio is currently 39.34%.

Analyst Ratings Changes

A number of research analysts have recently issued reports on DCI shares. Robert W. Baird set a $100.00 price target on Donaldson in a report on Friday. Wall Street Zen upgraded shares of Donaldson from a “hold” rating to a “buy” rating in a research note on Friday, October 3rd. Stifel Nicolaus lifted their price target on shares of Donaldson from $90.00 to $96.00 and gave the stock a “hold” rating in a research note on Friday. Morgan Stanley raised shares of Donaldson from an “underweight” rating to an “equal weight” rating and boosted their price objective for the company from $72.00 to $84.00 in a report on Monday, November 24th. Finally, Weiss Ratings restated a “buy (b)” rating on shares of Donaldson in a report on Tuesday, October 14th. Two equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $93.33.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Cetera Investment Advisers raised its holdings in Donaldson by 6.0% in the 1st quarter. Cetera Investment Advisers now owns 11,274 shares of the industrial products company’s stock worth $756,000 after purchasing an additional 639 shares during the period. LPL Financial LLC grew its holdings in Donaldson by 3.0% during the first quarter. LPL Financial LLC now owns 69,858 shares of the industrial products company’s stock valued at $4,685,000 after purchasing an additional 2,053 shares during the period. XTX Topco Ltd purchased a new stake in Donaldson in the first quarter worth about $268,000. Natixis Advisors LLC raised its stake in shares of Donaldson by 9.1% in the first quarter. Natixis Advisors LLC now owns 21,007 shares of the industrial products company’s stock worth $1,409,000 after buying an additional 1,759 shares during the period. Finally, Charles Schwab Investment Management Inc. lifted its position in shares of Donaldson by 2.3% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 778,962 shares of the industrial products company’s stock valued at $52,237,000 after buying an additional 17,145 shares in the last quarter. Hedge funds and other institutional investors own 82.81% of the company’s stock.

Donaldson Trading Down 1.8%

The stock has a 50-day moving average price of $85.15 and a two-hundred day moving average price of $77.43. The stock has a market capitalization of $10.71 billion, a PE ratio of 28.81, a PEG ratio of 2.34 and a beta of 0.99. The company has a debt-to-equity ratio of 0.44, a quick ratio of 1.25 and a current ratio of 2.15.

About Donaldson

Donaldson Company, Inc manufactures and sells filtration systems and replacement parts worldwide. The company operates through three segments: Mobile Solutions, Industrial Solutions, and Life Sciences. Its Mobile Solutions segment provides replacement filters for air and liquid filtration applications, such as air filtration systems; liquid filtration systems for fuel, lube, and hydraulic applications; exhaust and emissions systems and sensors; indicators; and monitoring systems.